Shock absorber business in India, SMIL and Magneti Marelli JV

Samvardhana Motherson International Ltd (SMIL) and Magneti Marelli Spa have signed a 50/50 JV agreement for automotive sector shock absorbers. SMIL enters the JV through acquisition of a stake representing 50% of the share capital of Magneti Marelli Shock Absorbers India Private Limited.

The latter is a Magneti Marelli-owned company dealing in the shock absorber business in India. With the JV based on Magneti Marelliâ€™s existing activity in the shock absorbers sector in India, the new business line expands SMILâ€™s business portfolio into the shock absorber category. Since 2008, both company’s have another JV in India for Lighting systems, Air Intake Manifolds and Pedal Assemblies. Business will be conducted in Magneti Marelliâ€™s existing shock absorbers manufacturing facility in Chakan, Pune (India).

Samvardhana Motherson Group (SMG) acquired Sintered Metal Components in 2012. The JV will also have access to it and SMG’s metal working, engineering & design, and IT solutions, and more. This is the group’s 20th acquisition. SMIL previously took over Visiocorp’s mirror business now rechristened Samvardhana Motherson Reflectec in 2009. Peguform was taken over in 2011 and renamed Samvardhana Motherson Peguform. Both businesses are in collaboration with its flagship company, Motherson Sumi Systems Limited (MSSL).